Question
A 10-year Treasury bond has an 8% coupon, and an 8-year Treasury bond has a 10% coupon. Both bonds have the same yield to maturity.
A 10-year Treasury bond has an 8% coupon, and an 8-year Treasury bond has a 10% coupon. Both bonds have the same yield to maturity. If the yield to maturity of both bonds increases by the same amount, which of the following statements would be correct?
Choix de groupe de rponses
The prices of both bonds will decrease by the same amount
Both bonds would decline in price, but the 10-year bond would have the greater percentage decline in price
The prices of both bonds would increase by the same amount
One bond's price would increase, while the other bond's price would decrease
The prices of the two bonds would remain cons
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